Thursday, March 22, 2012

HPH Trust to trade in dual currencies

SINGAPORE: Shares of Hutchison Port Holdings Trust will start trading in two currencies from April 2, as it becomes the first listed firm to make use of the dual currency trading platform announced by the Singapore Exchange (SGX) on Thursday.

HPH Trust units, which are quoted and traded in US dollars, will now have a Singapore dollar counter. This will enable investors to trade in both units in their existing securities accounts.

"For Singapore dollar-based investors, trading in the Singapore dollar counter may be more convenient and cost-effective without the need to incur foreign exchange costs," a news release said.

The trading of shares on both currencies is also not expected to impact the trust's financial position or the total number of shares issued.

"We believe dual currency trading is in the best interests of our unit holders and may enhance the liquidity of our units by attracting investors who wish to invest in Singapore dollars," said Mr Canning Fok, chairman of the trustee-manager of HPH Trust.

SGX said it introduced the dual currency trading platform to give investors and companies more choice and flexibility which in turn, could help improve liquidity in the exchange. Apart from listed securities, the platform is available for exchange traded funds (ETFs).

"As the Asian Gateway, SGX will continue to find new ways to assist our issuers in fund raising, and investors in trading and risk management," said Mr Magnus Bocker, CEO of SGX.

SGX said shares traded in both currencies are fungible and will be consolidated in investors' Central Depository (CDP) accounts.


View the original article here

Source From Channel News Asia

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